Question

If total purchase Rs 25000, total sales Rs 34500 and dividend Rs 3000 then HPR is

Answer 1

HPR = 0.5%

Explanation:

Purchase price = Rs. 25,000

Sell price = Rs. 34,500

Dividend = Rs. 3,000

Holding Period Return HPR = (Selling price + dividend - purchase price) / purchase price

 = (34500 + 3000 - 25000) / 25000

 = 12500/ 25000

 = 0.5%